Sri Trang progresses natural rubber expansions in Thailand

Bangkok – Sri Trang Agro-Industry Pcl. (STA) has completed expansion projects to add block rubber capacity at two production plants in the south of Thailand.

The group has now raised block rubber capacity at its plant in Bueng Kan province by 87.6 kilotonnes tonnes annum (ktpa) and in Sikao district of Trang province by 70ktpa, STA said in a recent announcement.

With the new addition, the Thai natural rubber (NR) group said, total production capacity for block rubber stands at 3.1 million tonnes per year.

Furthermore, STA is also moving ahead with other investment plans with two concentrated latex expansion projects set to complete shortly.

The production plant at Narathiwat province will add 18.4ktpa of capacity for concentrated latex by August, while another facility in Surat Thani province will add 113ktpa by December, said the group.

The projects will bring total production capacity to 3.31 million tonnes a year, said STA, noting that the expansions, overall, will raise the group’s global market share from 10% to 12%.

STA said it had employed “modern technologies and automatic machinery” to help reduce the need for additional labour.

According to the group, the new technologies will help speed up production, increase efficiency, and reduce waste.

The projects will also increase per-person annual yield to an average of 35 tonnes by 2025, more than double the 2021 yield of 16 tonnes per person per year.

Despite ‘sluggish outlook’ for demand, STA said its financial position remains strong with “orders flowing unabated from local and overseas customers.”